Business Wire

Lenovo’s Third Quarter FY 2016/17 Results Led by Growth In PC Business

16.2.2017 04:13 | Business Wire

Del

Lenovo Group (HKSE: 0992) (PINK SHEETS: LNVGY) today announced results for its third fiscal quarter ended December 31, 2016. Quarterly revenue was US$12.2 billion, a six percent decrease year-over-year. Third quarter pre-tax income was US$101 million, a 68 percent decline year-over-year. Net income fell 67 percent year-over-year to US$98 million.

Lenovo faced sizeable challenges in its three main lines of business, namely data center, mobile devices, and PCs and smart devices, all three industries that according to analysts’ reports continued to experience either slow growth or no growth during the quarter ended December 31, 2016.

“Despite ongoing macro-economic uncertainties and the two new businesses still in transition, Lenovo delivered a solid performance last quarter,” said Yang Yuanqing, Lenovo Chairman and Chief Executive Officer. “Our PC business remains strong, our Mobile business has made steady progress, and our Data Center business now has a clear improvement plan in place. Although it takes time to build the core competence in these two new growth engines, we are confident to achieve breakeven and profitable growth in them.”

The Company’s gross profit for the third fiscal quarter decreased 15 percent year-over-year to US$1.6 billion, with gross margin at 13.1 percent. Operating profit for the third quarter was US$138 million, down 64 percent year-over-year. Basic earnings per share for the quarter was 0.90 US cents, or 6.98 HK cents. As of December 31, 2016, Lenovo’s net cash was US$155 million.

Business Group Overview

In the third fiscal quarter, sales in our PC and Smart Devices (PCSD) Business Group, which includes PCs and tablets, was US$8.6 billion, an increase of two percent year-over-year. Quarter-to-quarter, our PCSD business grew a healthy 10.2 percent. Pre-tax income was US$431 million, an increase of seven percent year-over-year. Pre-tax income margin improved by 0.2 points year-over-year to five percent.

Helped by strong growth in North America, where Lenovo increased its shipments by 14 percent year-over-year, the Company shipped a total of 15.7 million PCs worldwide during the quarter. This is an increase of two percent year-over-year, and four points better than the industry as a whole, when compared to a total industry decrease of two percent for the same period. With record-high market share in China, Europe/Middle East/Africa region and Latin America, Lenovo remained the worldwide PC market leader with a record 22.4 percent market share.

Lenovo also saw strong growth in tablets, up ten percent year-over-year, outperforming the market by 29 points, as well as significant year-over-year increases in high-growth product lines such as gaming PC (up 71 percent), Chromebook (up 76 percent ), and detachables (up 91 percent). These are all product lines that Lenovo is ramping up, typified by our new Legion-branded series of gaming laptops launched last month at CES.

In our Mobile Business Group, which includes Moto and Lenovo-branded smartphones, Lenovo’s quarterly sales were US$2.2 billion, a decrease year-over-year of 23 percent, but an indicative seven percent increase over last quarter, driven by strong growth in mature markets. Pre-tax loss margin for the quarter improved by 0.6 points quarter-to-quarter to 7.1 percent.

With 15 million smartphones shipped in the third quarter, Lenovo improved seven percent quarter-to-quarter, including a 20 percent increase in shipments of Moto-branded products. Moto G shipments were up 12 percent year-over-year, aided by an increase in Latin America alone of 23 percent. In India, the world’s third-largest smartphone market, Lenovo was a strong smartphone supplier with 9.9 percent market share in the third quarter.

For Lenovo’s Data Center Group (DCG), which includes servers, storage, software and services, sales in the third fiscal quarter were US$1.1 billion, down 20 percent year-over-year, and three percent quarter-to-quarter. With large quarter-to-quarter revenue gains in North America (up 27 percent), Latin America (up ten percent), and Europe/Middle East/Africa region (up nine percent), Lenovo’s DCG business showed signs of improvement quarter to quarter.

Lenovo continued its focus on the transformative actions that will help drive long-term DCG competitiveness, such as strengthening our sales teams, investing in the channel, revamping our product lines, building our brand strategy, and adding new partnerships. For example, we have fortified our Global Accounts team, our sales group that services Fortune 500 clients, and saw growth in our DCG business there for the quarter grow 37 percent year-over-year.

Geographic Overview

In China, in the third fiscal quarter, Lenovo recorded consolidated sales of US$3.5 billion, a two percent decrease year-over-year, but an eight percent increase quarter-to-quarter. China represented 28.5 percent of the Company’s total worldwide third quarter sales. Pre-tax income in China increased eight percent to US$180 million year-over-year, with pre-tax income margin gaining half-a point to 5.2 percent.

In Asia Pacific, Lenovo had consolidated sales in the third fiscal quarter of US$1.7 billion, a decrease of 14 percent year-over-year, representing 14 percent of the Company’s total worldwide sales. The region had a pre-tax loss of US$41 million and a pre-tax loss margin of 2.4 percent.

In Europe, Middle East and Africa, consolidated sales in the third fiscal quarter declined 2.7 percent year-over-year to US$3.4 billion, but increased a robust 23 percent quarter-to-quarter, or 27.6 percent of the Company’s total worldwide sales. The pre-tax loss was US$102 million with a pre-tax loss margin of three percent.

In the Americas, consolidated sales were US$3.6 billion, down eight percent year-over-year, or 29.9 percent of Lenovo’s total worldwide sales during the third fiscal quarter. Pre-tax income was US$39 million, with a pre-tax income margin of 1.1 percent.

About Lenovo

Lenovo (HKSE: 0992) (PINK SHEETS: LNVGY) is a US$45 billion global Fortune 500 company and a leader in providing innovative consumer, commercial, and enterprise technology. Our portfolio of high-quality, secure products and services covers PCs (including the legendary Think and multimode YOGA brands), workstations, servers, storage, smart TVs and a family of mobile products like smartphones (including the Motorola brand), tablets and apps. Join us on LinkedIn, follow us on Facebook or Twitter (@Lenovo) or visit us at www.lenovo.com.

     

LENOVO GROUP

FINANCIAL SUMMARY

For the fiscal quarter ended December 31, 2016

(in US$ millions, except per share data)

 
 

Q3
16/17

 

Q3
15/16

 

 

Y/Y
CHG

Revenue 12,169     12,913     -6 %
Gross profit 1,595     1,885     -15 %
Gross profit margin 13.1 %   14.6 %   -1.5pts
Operating expenses (1,457 )   (1,506 )   -3 %
Expenses-to-revenue ratio 12.0 %   11.7 %   0.3pts
Operating profit 138     379     -64 %
Other non-operating expenses (37 )   (59 )   -37 %
Pre-tax income 101     320     -68 %
Taxation 6     (26 )   N/A  
Profit for the period 107     294     -64 %
Non-controlling interests (9 )   6     N/A  
Profit attributable to equity holders

98

   

300

   

-67

%

EPS (US cents)          
Basic 0.90     2.71     -1.81
Diluted 0.90     2.70     -1.80  

Contact information

Lenovo
Hong Kong
Angela Lee, +852 2516 4810
angelalee@lenovo.com
or
United States
Ray Gorman, +1 919-257-6325
rgorman@lenovo.com

Om Business Wire

Business Wire
Business Wire
24 Martin Lane
EC4R 0DR London

+44 20 7626 1982http://www.businesswire.co.uk

Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.

Følg saker fra Business Wire

Registrer deg med din epostadresse under for å få de nyeste sakene fra Business Wire på epost fortløpende. Du kan melde deg av når som helst.

Siste saker fra Business Wire

PsiOxus Therapeutics Announce Two New Board Appointments: New Board Appointments Strengthen Company’s US Presence17.8.2017 07:00Pressemelding

PsiOxus Therapeutics, Ltd. (PsiOxus) today announced the appointment of Charles Rowland and Duncan Higgons to the Board of Directors as part of an ongoing drive to expand in the US. Charles Rowland was most recently the President and Chief Executive Officer (CEO) of Aurinia Pharmaceuticals, a clinical stage pharmaceutical company focused on the global lupus nephritis market. Prior to this, he served as the Vice President and Chief Financial Officer (CFO) of ViroPharma, during which time the company grew into a global biopharmaceutical business with $500 million in annual revenues until it was acquired by Shire plc for $4.2 billion. Before joining ViroPharma, Mr. Rowland was executive Vice President, CFO, and interim co-CEO, for Endo Pharmaceuticals. In his earlier career, Charles held finance and operational positions at Biovail Pharmaceuticals, Breakaway Technologies, Pharmacia

Smarsh Adds Voice Archiving Offering with Acquisition of London-Based Cognia17.8.2017 06:59Pressemelding

Smarsh®, providing information archiving solutions for compliance, e-discovery and risk management, has completed the acquisition of Cognia, a worldwide leader in cloud-based voice archiving, audio search and analytics. Smarsh will leverage Cognia’s intellectual property and development resources to offer its global customer base enhanced capabilities around mobile and fixed-line voice communication – alongside a market-leading range of electronic communications – within The Archiving Platform. The acquisition will expand the existing presence of Smarsh in Europe and is central to its MiFID II compliance solution for financial firms. In addition to capturing incoming and outgoing communication from fixed-line recording solutions, Cognia uniquely captures voice content directly from leading mobile carriers. Carrier-direct capture is the most reliable and automated method for capt

Schlumberger Announces Third-Quarter 2017 Results Conference Call16.8.2017 21:23Pressemelding

Schlumberger Limited (NYSE:SLB) will hold a conference call on October 20, 2017 to discuss the results for the third quarter ending September 30, 2017. The conference call is scheduled to begin at 8:30 am US Eastern time and a press release regarding the results will be issued at 7:00 am US Eastern time. To access the conference call, listeners should contact the Conference Call Operator at +1 (800) 288-8967 within North America or +1 (612) 333-4911 outside of North America approximately 10 minutes prior to the start of the call, and ask for the “Schlumberger Earnings Conference Call.” A webcast of the conference call will be broadcast simultaneously at www.slb.com/irwebcast on a listen-only basis. Listeners should log in 15 minutes prior to the start of the call to test their browsers and register for the webcast. Following the end of the conference call,

Rimini Street Named to Inc. 5000 List for Seventh Consecutive Year16.8.2017 18:20Pressemelding

Rimini Street, Inc., a global provider of enterprise software products and services, and the leading independent support provider for Oracle and SAP products, today announced that it was named to Inc. magazine’s 36th annual Inc. 5000 list for the seventh consecutive year. The Inc. 5000 list is an exclusive ranking of the nation’s fastest-growing private companies and represents the most comprehensive look at America’s entrepreneurs. This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20170816005908/en/ Rimini Street has earned a place on the annual Inc. 5000 list since 2011, joining an elite group – approximately 2% – of Inc. 5000 honorees to ever achieve this milestone. (Photo: Business Wire) Rimini Street has earned a place on the annual Inc. 5000 list since 2011, joining an elite group – approximatel

Keio Plaza Hotel Tokyo Starts "Ikebana" Flower Arrangement Workshops16.8.2017 14:00Pressemelding

Keio Plaza Hotel Tokyo, one of Japan’s most prestigious international hotels located in Shinjuku, Tokyo, starts special 45 minute classes to teach overseas guests about “Ikebana” flower arrangement which will be held on every other Thursday beginning from August in a private room for JPY3,000 per participant. Instruction and commentary will be provided by the renowned flower arrangement artist Hiroki Maeno. This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20170816005431/en/ From August, 2017, Keio Plaza Hotel Tokyo starts special 45 minute classes to teach overseas guests about "Ikebana" flower arrangement workshops. (Photo: Business Wire) Flower arrangement artist Hiroki Maeno has created special and unique flower arrangements for display in the main lobby of our hotel with each cha

Maxion Wheels to Feature Market Leading Commercial Vehicle Steel Wheels at COMTRANS 201716.8.2017 13:00Pressemelding

Maxion Wheels, the world’s largest wheel manufacturer, announced today its participation in the biennial COMTRANS / 17 International Commercial Vehicle Show held in Moscow, Russia from September 4 – 9, 2017, in Hall 15/ Stand 15-432. Customers and visitors to the Maxion Wheels exhibit will have the opportunity to learn more about the state-of-the-art commercial vehicle steel wheels that have supported the success of global original equipment manufacturers for almost 100 years. One of the key products on display will be the new 8.5” x 24” wheel for tubeless tire applications in Russia, the Middle East and Africa. The wheel boasts 15 percent less weight than the prior generation wheel, enhancing tire life and improving fuel efficiency. ABOUT MAXION WHEELS Maxion Wheels, a division of IOCHPE-MAXION S.A., is a leading wheel manufacturer for passenger cars,

I vårt presserom finner du alle våre siste saker, kontaktpersoner, bilder, dokumenter og annen relevant informasjon om oss.

Besøk vårt presserom